Central excise under notification no. 10/97-ce

If You are not mainataining seperate registers for dutiable & exempted goods than you have to pay the said duty. If you have maintained seperate registers for dutiable & exempted goods need not pay the said duty. Refer general exemption no. 19 in Central Excise Tariff Act relates to not.no.10/97.

My question is by maintining seperate registers whether we can avail cenvat on goods used in supply and exempt from paying excise duty.

No, venkatesh.

If you are maintaining separate registers then you cannot avail cenvat credit on the goods used in exempt sales.

There may be certain common inputs and common inputs services, for these you may use cenvat credit but, proportionate reversal shall be done under rule 6(3A).